Apollo Global Management entered into exclusive negotiations with Air France-KLM to become a shareholder in one of the airline group’s subsidiaries owning spare engines, with an injection of €500 million.
“The proceeds of the transaction would enable Air France-KLM and Air France to partially redeem the French State perpetual bonds,” the Franco-Dutch group said in a statement. In April 2020, the French government offered financial support to its national carrier in the form of two loans, one from six banks guaranteed by the state, and one direct shareholder loan from the state, for a total of €7 billion.
The injection will also support the financing of future spare engine acquisitions under Air France’s fleet renewal program. As a condition of the state aid it received, Air France pledged to renew its fleet with more efficient aircraft, to operate a “50% reduction in its CO2 emissions per passenger and per km between 2005 and 2030,” and to use at least 2% of sustainable fuel by 2025.
On May 18, 2022, Air France-KLM announced having reached a strategic partnership with the French transportation and shipping company CMA CGM Group to jointly sell their air freight capacity, which will also include the French transportation and shipping company becoming a shareholder of the airline group.